Report: Layoffs strike Disney's Club Penguin

Disney Interactive has laid off a number of people who work on its decade-old virtual world Club Penguin this week across offices in Los Angeles, England and Canada, according to both a local news report and a blog post from a former Club Penguin artist.

Disney paid $700 million to acquire the kid-focused virtual world and its British Columbian creators back in 2007; Club Penguin went on to repeatedly miss profit goals, and its three co-creators have since departed Disney.

But it's still operating, and today British Columbian local news outlet Castanet reports that 30 people at Disney Canada (formerly New Horizon Interactive, which created Club Penguin in partnership with RocketSnail Games) have lost their jobs.

More layoffs are believed to be occurring at Club Penguin offices in Los Angeles and Brighton, England, with Castanet reporting that the latter office is being shut down. Gamasutra has reached out to Disney Interactive for confirmation and further comment on these cutbacks.

A Disney Interactive representative reportedly issued the following statement to Castanet regarding the layoffs:

"Disney Interactive continually looks to find ways to create efficiencies and streamline our operations. As part of this ongoing process, we are consolidating a small number of teams and are undergoing a targeted reduction in workforce."

As always, if you or someone you know was affected by this deal you can email Gamasutra to tell your story confidentially.